GM May Sell New Mini-Cars to U.S. Buyers

[GEM1957]

July 3 (Bloomberg) -- General Motors Corp., the automaker that popularized the Hummer, may sell a mini-car four feet (1.2 meters) shorter than its biggest offering and more than a foot shorter than anything else it markets in the U.S. to win back buyers scared off by high fuel prices.

GM may bring the production version of the Chevrolet Beat to the U.S., people familiar with the plan said. The car, which would normally be reserved for markets such as Asia and Latin America, gets as much as 40 miles a gallon, a fuel efficiency topped in the U.S. only by hybrids.


http://www.bloomberg.com/apps/news?p...n0E&refer=home

[Hurricane]

GM shifting tiny Chevy Beat car to U.S.

By Steve Gelsi, MarketWatch
Last update: 10:05 a.m. EDT July 3, 2008NEW YORK (MarketWatch) - General Motors will shift its Chevrolet Beat concept car to the U.S. market as the ailing car maker attempts to lift its fortunes from its lowest stock price since the Eisenhower administration, according to a report Thursday.

The perky two-door, which packs a gas-sipping 1.2 liter turbocharged engine, had been targeted for the Asian and Latin American markets, gets about 40 miles to the gallon.

With GM's truck sales in a free-fall, the ailing car giant's market cap now comes in at $6 billion, a fraction of other components of the Dow Jones Industrial Average.

GM shares skidded to a multi-year low of $9.98 a share on Wednesday, on a key downgrade from Merrill Lynch.

Consensus is growing on Wall Street that GM may have to float debt or issue stock to cope with its rising cash burn rate. The Detroit auto maker may be on the hook for as much as $15 billion, according to reports.

GM handed in an 18% drop in monthly vehicle sales on Tuesday, sideswiped by plunging consumer confidence and record-high gas prices. The stock moved up slightly on the news as Wall Street had expected an even more severe decline.

More here: http://www.marketwatch.com/news/stor...D&siteid=yhoof

[jeep2c]

I wish they'd bring the Beat and the Groove. I'd love a groove, and think the Beat would be popular amongst young people.

[FenwickHockey65]

We need the Beat now more than ever. Good plan.

[jkennedy293]

If they can bring it in for 2010 model year, they would have a great tie-in with the Transformers movie.

[jkennedy293]

GM May Sell New Mini-Cars to U.S. Buyers

[Clownzilla]

Well, if the production model looks close to the concept then I think it would be hard to keep these on the lots. Couple that with the Groove (for 4 door lovers) and you have a VERY hot brand following brewing. I honestly can say that these two vehicles SMOKE the micro car offerings by Toyota & Honda in the style department.

[Ming]

Well, I wish GM has jumped a bit sooner with all of the doom and gloom out there. Would have done wonders for their fuel efficiency image. I remember well the dour pooh-poohing the minicars got from Bob Lutz right about when they were introduced, and the negative reaction here at GMI to his discouraging words:
Lutz: U.S. not a frontrunner to get a new Chevy minicar

Of course, there was the addtional statement: "Unless something drastic changes, like gas prices going through the roof for more than a month, or a sudden fashion shift to tiny cars,"
I guess it was too much for me to hope for GM to lead and not wait for things to get really bad, banking on SUVs until the bitter end and then finally coming out and saying "Yes, it's bad enough now".

But we've seen spy shots of the "Beat" around the web, so I'm not so discouraged to think they've done nothing on this front. Then again, the "Beat" we've been seeing could be nothing more than a warmed over Matiz with Beat-inspired styling.

Still, I fear for anything planned out to 2010 or beyond. You saw it here first - 8/21/2005:

Do "Kei" Cars have a Place in a $3.00+ per gallon America?

Who says saving gas (and money) needs to mean a stripper, rental grade Focus or Aveo? Or must require a pricey hybrid system? The answer I think is in small, nimble, fun to drive yet well designed and well-equipped cars like the 28/36 mpg MINI. But I say why not take that concept one step smaller (and cheaper)?

And...

Time For a Smaller Car Standard?

At the very least, such minicars might make a good stop-gap until GM and other automakers find a way to make Hybrid and Plug-In technology truly affordable to the masses in such a nightmare gasoline scenario. Not everyone will want to buy a $20,000-40,000 car for the sake of fuel efficiency, and just because we have safety laws between motorcycles and cars that (to me) make little sense, we should not be denied the option of affordable, 4-seater, fuel efficent cars that slot between motorbikes and today's U.S. automobiles.

What's Hot - Do GM Dealers "Get it"?

"But it's just an economy car, who cares about looks?"

[DJR]

I always thought the Beat was coming to North America. I never realized it wasn't meant for sale here.

With the CAFE regulations, I don't see how GM could not sell this car here! It looks pretty good for a sub-compact so if they can add a competitive price with some great features (VVT, 6-speed manual/auto) it will be a gauranteed winner!

[Ming]

Originally Posted by DJR

I always thought the Beat was coming to North America. I never realized it wasn't meant for sale here.

With the CAFE regulations, I don't see how GM could not sell this car here!

The rumor here at GMI has been that it is/was a done deal, despite Bob Lutz' words of discouragement (see my post above).

[Ambalanche]

I agree with Jeep2C, I wish they'd bring the Groove. It would make a good replacement for the HHR or at least compliment it. I'm not sure how well the Beat will do, I just don't care for the styling. I like the Fiesta better.

[61BelAir]

hhhmmm...great idea GM, maybe you can have it here by 2015. You're way ahead of the curve again!

[Ming]

Originally Posted by Ambalanche

I agree with Jeep2C, I wish they'd bring the Groove. It would make a good replacement for the HHR or at least compliment it. I'm not sure how well the Beat will do, I just don't care for the styling. I like the Fiesta better.

The Groove is too much like a mix of the existing retro HHR - that seems to appeal to Baby Boomers and retirees more than young people who need a small affordable car - and the less than hot-selling new Scion Xb. The PT Cruiser / Scion Xb white haired owners, that is.

I don't think it would win many new customers who wouldn't already have considered the HHR. The Beat is significantly more radical and sharp looking than the Aveo, on the other hand. At least in concept form.

However, your post has a point in that GM might consider more than just one of the triplets if they're going to sell the Beat here anyway.

[xyagentguy]

Wait a second, I'm confused.. you mean at one point they had no plans to bring the Beat to the US market? I thought it was American's that voted between the Beat, Groove, and Trax to determine which one GM would green-light???

A week or two back we had semi-confirmation that the Trax was in Transformers 2, as well. I imagine they green-lit both, no? Why would they want that kind of publicity and advertising for a vehicle they don't plan to sell?

Honestly, I wouldn't be surprised if they green-lit all three of the mini's at this point, all three had an extremely positive reaction and I would love the selection!

[61BelAir]

Originally Posted by jeep2c

I wish they'd bring the Beat and the Groove. I'd love a groove, and think the Beat would be popular amongst young people.

I voted for the Groove when the trio came out. Its pretty cool looking and the front is more in line with the new Chevrolet front design.